[Federal Register Volume 69, Number 110 (Tuesday, June 8, 2004)]
[Rules and Regulations]
[Pages 31910-31911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-12938]


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DEPARTMENT OF DEFENSE

48 CFR Parts 225 and 252

[DFARS Case 2002-D034]


Defense Federal Acquisition Regulation Supplement; Fish, 
Shellfish, and Seafood Products

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has adopted as final, with changes, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement section 8136 of the DoD Appropriations Act for Fiscal Year 
2003 and similar sections in subsequent DoD appropriations acts. 
Section 8136 requires the acquisition of domestic fish, shellfish, and 
seafood, to include fish, shellfish, and seafood manufactured or 
processed, or contained in foods manufactured or processed, in the 
United States.

EFFECTIVE DATE: June 8, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328; 
facsimile (703) 602-0350. Please cite DFARS Case 2002-D034.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD published an interim rule at 68 FR 7441 on February 14, 2003, 
to implement section 8136 of the DoD Appropriations Act for Fiscal Year 
2003 (Pub. L. 107-248). Section 8136 relates to application of 10 
U.S.C. 2533a (the Berry Amendment), which prohibits DoD from acquiring 
certain items unless they are grown, reprocessed, reused, or produced 
in the United States. 10 U.S.C. 2533a(f) provides an exception to this 
prohibition for foods manufactured or processed in the United States. 
Section 8136 of Pub. L. 107-248 made the exception at 10 U.S.C. 
2533a(f) inapplicable to fish, shellfish, and seafood products. The 
interim rule published on February 14, 2003, amended DFARS 225.7002-2 
and the clause at DFARS 252.225-7012 to add requirements for the 
acquisition of domestic fish, shellfish, and seafood in accordance with 
section 8136 of Pub. L. 107-248.
    As a result of public comments received on the interim rule, DoD 
published a proposed rule at 68 FR 53945 on September 15, 2003, to 
clarify what ``produced in the United States'' means with regard to 
fish, shellfish, and seafood. DoD received no comments on the proposed 
rule. Therefore, DoD has adopted the proposed rule as a final rule, 
with an update to the statutory reference at DFARS 225.7002-2 to 
reflect the recurrence of this provision in section 8118 of the DoD 
Appropriations Act for Fiscal Year 2004 (Pub. L. 108-87).
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This rule may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq. DoD has prepared a final 
regulatory flexibility analysis. A copy of the analysis may be obtained 
from the point of contact specified herein. The analysis is summarized 
as follows:
    This final rule amends the DFARS to implement section 8136 of the 
DoD Appropriations Act for Fiscal Year 2003 and similar sections in 
subsequent DoD appropriations acts. Section 8136 makes 10 U.S.C. 
2533a(f) inapplicable to fish, shellfish, and seafood products. 10 
U.S.C. 2533a(f) is an exception to domestic source requirements that 
applies to foods manufactured or processed in the United States. The 
objective of the rule is to prohibit DoD acquisition of foreign fish, 
shellfish, and seafood, even if processed or manufactured in the United 
States. The rule applies to all suppliers, processors, and 
manufacturers of seafood products sold to DoD. There were no public 
comments on the initial regulatory flexibility analysis. As a result of 
public comments received on the interim rule, the final rule clarifies 
what ``produced in the United States'' means with regard to fish, 
shellfish, and seafood. The rule should have a beneficial impact on 
domestic suppliers of fish, shellfish, and seafood.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

0
Therefore, 48 CFR parts 225 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 225 and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 421 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION

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2. Section 225.7002-2 is amended by revising paragraph (l) to read as 
follows:


225.7002-2  Exceptions.

* * * * *
    (l) Acquisitions of foods manufactured or processed in the United 
States, regardless of where the foods (and any component if applicable) 
were grown or produced. However, in accordance with Section 8136 of the 
DoD Appropriations Act for Fiscal Year 2003 (Pub. L. 107-248) and 
similar sections in subsequent DoD appropriations acts, this exception 
does not apply to fish, shellfish, or seafood manufactured or processed 
in the United States or fish, shellfish, or seafood contained in foods 
manufactured or processed in the United States.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

0
3. Section 252.212-7001 is amended as follows:
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a. By revising the clause date to read ``(JUN 2004)''; and
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b. In paragraph (b), in entry ``252.225-7012'', by removing ``(MAY 
2004)'' and adding in its place ``(JUN 2004)''.

0
4. Section 252.225-7012 is amended as follows:
0
a. By revising the clause date to read ``(JUN 2004)'';
0
b. By adding paragraphs (a)(3) and (a)(4);
0
c. By revising paragraph (b) introductory text and paragraph (c)(4); 
and
0
d. By adding paragraph (d) to read as follows:


252.225-7012  Preference for Certain Domestic Commodities.

* * * * *
    (a) * * *

    (3) United States means the 50 States, the District of Columbia, 
and outlying areas.

[[Page 31911]]

    (4) U.S.-flag vessel means a vessel of the United States or 
belonging to the United States, including any vessel registered or 
having national status under the laws of the United States.
    (b) The Contractor shall deliver under this contract only such 
of the following items, either as end products or components, that 
have been grown, reprocessed, reused, or produced in the United 
States:
* * * * *
    (c) * * *
    (4) To foods, other than fish, shellfish, or seafood, that have 
been manufactured or processed in the United States, regardless of 
where the foods (and any component if applicable) were grown or 
produced. Fish, shellfish, or seafood manufactured or processed in 
the United States and fish, shellfish, or seafood contained in foods 
manufactured or processed in the United States shall be provided in 
accordance with paragraph (d) of this clause;
* * * * *
    (d)(1) Fish, shellfish, and seafood delivered under this 
contract, or contained in foods delivered under this contract--
    (i) Shall be taken from the sea by U.S.-flag vessels; or
    (ii) If not taken from the sea, shall be obtained from fishing 
within the United States; and
    (2) Any processing or manufacturing of the fish, shellfish, or 
seafood shall be performed on a U.S.-flag vessel or in the United 
States.

[FR Doc. 04-12938 Filed 6-7-04; 8:45 am]
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